NEW DELHI: Many African countries have shown interest in trading with India through rupee and their local currencies. These countries include Nigeria and Tanzania. India is already trading in rupee and rubal with Russia in defence sector. Besides African nations, countries like UAE, Sri Lanka, Bangladesh, Maldives also want to deal in rupee.
Experts observing India’s foreign trade say that overseas business in Indian currency will give a big boost to Indian economy. “If we manage to get 25 to 30 countries to trade in local currencies within a span of four years, our exports would touch $1 trillion from the existing $420 billion,’’ said an industry expert.
According to experts, many countries in Africa are facing shortage of hard currency so this kind of an arrangement will work well for them as they can trade commodities and minerals for food and essential items like medicines.
“Africa is rich in minerals and oil and they have a food deficit which can be filled by India. Medicines, tiles, electronic goods are in high demand and trading in Indian rupee will work well for them. Besides, they also have an option of equity investment which would mean that they can use the amount due to them to invest in companies/projects in India,’’ said an industry source. Meanwhile, India and Russia are already trading in local currencies in the defence segment. There is also an option of equity investment.